Brands

Google Parent Alphabet Beats Quarterly Earnings Expectations, With Ad Revenue Up 21%

Alphabet soared past earnings expectations for the third quarter with total revenue of $27.77 billion, up from $22.45 billion during the same period last year.

According results released today, Google raked in $27.5 billion of the parent company’s total, with advertising accounting for $24.1 billion of that. Other revenue from units including cloud services and hardware sales made up another $3.4 billion, while long-shot “other bets” brought in $302 million. (Other bets, which includes Alphabet’s self-driving car unit, reported an operating loss of $812 million.)

Aggregate paid clicks were up 47 percent in the third quarter, while paid clicks on Google properties increased 55 percent. Aggregate cost per click fell 18 percent year over year but rose 1 percent on a quarterly basis. Cost per click on Google properties declined 21 percent and 5 percent for network member properties.

Google’s number of employees increased to 78,101 at the end up September, up from 69,953 a year earlier.

“We had a terrific quarter, with revenues up 24 percent year on year, reflecting strength across Google and Other Bets,” Alphabet CFO Ruth Porat said in a statement. “Our momentum is a result of investments over many years in fantastic people, products and partnerships.”

While advertising still makes up the majority of the business, Google has increasingly bet on hardware. Earlier this month, it debuted the Google Pixel 2 smartphone along with a new line of smart speakers, an updated VR headset and a laptop.